Change Management in e-Government

Change Management in e-Government Dr Krishna Tanuku

Outline • Change Management in e-Government • The essence of e-Government • Rationale for Change Management in e-Government • Resistance to e-Government adoption • Analyzing the forces • Effective Change Management • Developing support for e-Government • Need for a new paradigm of Leadership • What’s in it for you? • Career opportunity space • Non-technical Competencies to be built • Scenario Discussion • Agriculture sector • Healthcare sector

Change Management in e-Government • The essence of e-Government • The challenges facing the governments worldwide today that e-Government attempts to address • To create a participatory government that is responsive to the needs of the citizens and businesses • To promote active feedback from citizens and businesses on government policies and services • To build trust in the public sector and institutions • To develop effective and efficient processes and services that bridge the silo environment of government agencies Union Budget 2010

Change Management in e-Government • The essence of e-Government • e-Government is an enabling tool that helps achieve broader societal, economic and political benefits eGov Impact

Change Management in e-Government • The essence of e-Government • e-Government is • Not about “E”, but about “Government” • Not about “Technology”, but about “Citizens and Businesses” • Not about “Translating processes”, but about “Transforming processes” eGov Benefits

Change Management in e-Government • The essence of e-Government • Involves transformation of policies, procedures and people with a desire to transform the way government functions related to its constituents Transformational Dimensions

Change Management in e-Government • The essence of e-Government • It necessitates a shift in mindset of the government to proactively involve citizens, businesses and other agencies in creating and enabling effective governance • It is a transformational change impacting all organizational elements (Structure, Systems, Style, Staff, Skills, Strategy and Shared Values) e-Government A Transformational Change e-Government adoption impacts all the 7* Elements of an organization * McKinsey 7S Framework

Change Management in e-Government • The essence of e-Government e-Government Ingredients of Transformation Change* Department Centric Approach Customer Centric Approach Internal changes needed for successful eGov adoption Process Orientation Service Orientation Output based Assessment Outcome based Assessment Departmental View Integrated View * J Satyanarayana

Change Management in e-Government • The essence of e-Government Change Management is one of the crucial components e-Government requires a holistic approach* * J Satyanarayana

Change Management in e-Government • Rationale for Change Management in e-Government • e-Government is much more than a mere technology adoption • It is the use of ICT in public administrations combined with organizational change and new skills in order to improve public services, democratic processes and strengthen support to the public policies • In e-Government initiatives, the transformational efforts encompass all the major organizational dimensions (strategy, structure, people, technology and processes) as well as the principal external forces (such as citizens, suppliers, partners and regulators) • e-Government demands a fundamental change in the public sector organizations’ structure, values, culture and the way of conducting business

Change Management in e-Government • Rationale for Change Management in e-Government • e-Government is a business and process transformation agent that • Demands a radical change in the mindset of the entire organization • Introduces new technology and procedures • Enables transparent performance monitoring • Necessitates retraining • Minimizes the role of intermediary • Creates a fear of loss of jobs • Changes the power structure • e-Government adoption requires a new vision, strategy and plan shared by all stakeholders • Most of all, a change in the mind set is required

Change Management in e-Government Fundamental changes introduced by e-Government* * Ho, 2002

Change Management in e-Government • Rationale for Change Management in e-Government • Enablers of effective e-Government implementation* • Technology (20%) • Business Process Reengineering (35%) • Change Management (40%) • Luck (5%) • What else is missing * SubhashBhatnagar, World Bank

Change Management in e-Government • Resistance to e-Government adoption • e-Government represents a fundamental change and therefore, resistance to change from some stakeholders is realistic • Bureaucrats resist e-Government implementation due to • Lack of clear understanding of the change • Perceived loss of value, authority and control • Lack of trust in the initiators • Personal feelings, biases and vested interests • Organization as a whole may also resist e-Government implementation owing to • Organizational design • Organizational culture • Resource limitations • Fixed investments • Increased level of transparency

Change Management in e-Government Force Field Analysis • Analyzing the driving/restraining forces that influence the adoption of e-Government • Force field analysis* is a valuable change management tool that could be used for this purpose to • Investigate balance of power involved in an issue • Identify most important stakeholders of the issue • Identify opponents and allies • Identify how to influence each stakeholder e-Government Restraining Forces Driving Forces Weak Weak Moderate Strong Equilibrium N o Change Change * Kurt Lewin

Change Management in e-Government • Analyzing the driving/restraining forces that influence the adoption of e-Government • Force Field Analysis Methodology • Describe the current situation & the desired situation • Identify where the current situation will go if no action is taken • List all the forces driving change & all the forces resisting change toward the desired situation • Discuss and interrogate all of the forces: Are they valid? Can they be changed? Which are the critical ones? • Allocate scores to each of the forces (1=extremely weak &10 = extremely strong) • Chart the forces. List driving forces on the left & list restraining forces on the right • Determine whether change is viable and progress can occur • Discuss how the change can be affected by decreasing the strength of the restraining forces or by increasing the strength of driving forces • Remember that increasing the driving forces or decreasing the restraining forces may increase or decrease other forces or even create new ones

Change Management in e-Government • Effective Change Management • It is all about managing the “Journey through the hell” – minimizing the size and duration of productivity dip Productivity of Government Desired State Current State Change Management Productivity Dip Time

Change Management in e-Government • Effective Change Management • 5 sets of Activities for effective change management* * Cummunigs & Worley

Change Management in e-Government • Effective Change Management • 8* steps to manage organizational change through e-Government adoption • Establish a sense of urgency • Create a team of leaders that are credible, have authority and expertise in the area of focus • Develop a vision and strategy • Communicate the change vision • Empower broad-based action by removing barriers to change • Plan milestone achievements • Build on past successes so that change becomes permeated throughout the organization • Anchor new approaches in the culture * Leading Change, Kotter

Change Management in e-Government • Developing support from the bureaucracy for e-Government change process • Educate and communicate about what, when, how and why of e-Government implementation • Participate and involve bureaucracy to elicit information for improving the effectiveness of change • Extend task support such as training to enhance self-efficacy, motivation and performance levels of bureaucracy • Provide support and incentives to bureaucracy

Change Management in e-Government • e-Government calls for a new paradigm of leadership • Need for transformational leadership with the ability to mobilize community and commitment around common goals • Need for cross-boundary leadership that satisfies citizens, builds multi-organizational capabilities, and aligns skills and behaviors to vision and processes • Leaders must influence others without relying on authority, and share responsibility and accountability with other cross-boundary participants • Collaboration is a critical competency for an e-Government leader • Leaders must appreciate cultural and organizational differences

Change Management in e-Government • What’s in it for you? • Career Opportunity Space: Opportunities much beyond being part of the technical team to • Envision and operationalize systemic changes • Simplify multitude of laws, rules, regulations, processes and procedures of government • Enable electoral reforms, decriminalization of politics, downsizing and flattening of government departments • Design, develop and implement systems to enhance accountability • Improve responsiveness of government • Build transparency into the system • Self governance at personal level • How do you apply these principles to govern yourself and your future?

Change Management in e-Government • What’s in it for you? • Non-technical competencies to be built to lead e-Government projects • Understanding of environment, principles, policies and foundations of e-Government • Systems thinking • Strategic planning skills • Change management skills • Collaboration skills • Enterprise integration skills • Human resource management skills • Financial management skills • Performance management skills • Execution capabilities • Ability to use information strategically • Self Governance tools

e-Governance: Agriculture Sector • Scenario Discussion • Scenario • Growth performance of agriculture has important implications for overall growth of the Indian economy and alleviation of poverty among the rural poor • A number of major crops have been witnessing a decline in productivity growth • Indian agriculture faces unfair competition from cheap imports • Lack of adequate knowledge amongst farmers about pre- and post-harvest aspects of agriculture • Centralized planning impeding the development process • Need for a shift from informal agriculture economy to formal economy • Increasing levels of aspirations, frustration and despair amongst the farmers • Questions • How to address the governance of agriculture in India? • What essential farmer centric services to be e-enabled?

e-Governance: Agriculture Sector • Scenario Discussion Farming Needs How can eGov address these needs ?

e-Governance: Agriculture Sector • Scenario Discussion • Change Management Sample Force Field Analysis Restraining Forces Driving Forces Centralized Planning Emphasis on Decentralized Planning Large Pool of Illiterate & Resource Poor Farmers Urgency to address Food crisis Federal nature of constitution Lack of synergy amongst institutions Globalization, Liberalization & Reforms Equilibrium N o Change Change

e-Governance: Healthcare Sector • Scenario Discussion • Scenario • Public health service run by Government is overburdened and collapsing • Large geographical size, population density, inaccessibility, illiteracy, poverty, poor nutritional status, diversity in food habit and life style are various impediments • Low budget for health, lack of funds, coordination, issues of leakage and inefficient distribution have triggered down trend in health services • Questions • How to address the governance of healthcare in India using ICT? • What is the need and how to interlink primary, secondary and tertiary level health centers?

e-Governance: Healthcare Sector • Scenario Discussion Central Government (Policy, Funding & Coordination) Government Hospitals Private Healthcare Clinics Labs NGOs Social Care Pharmaceuticals R&D Institutions How can eGov help? Silo Structures (no integration) Practitioners Patients Scientists

e-Governance: Healthcare Sector • Scenario Discussion • Change Management Sample Force Field Analysis Restraining Forces Driving Forces Weak customer with low bargaining power Population Growth Absence of competition Rising demand & costs of Healthcare Silo Structure & Culture of Public Institutions Need for improved Disease Surveillance Non-existence of insurance/social-security Serious Diseases Equilibrium N o Change Change

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Change Management in e-Government